Mar-18 pension credited in Apr-18 but TDS deducted as per 26AS for AY 19-20

Tax queries 414 views 10 replies

Pension is received through SBI. TDS deductor is SBI as per 26AS.

TDS has never been deducted before from pension or reported in 26AS. No Form 16s have been issued.

But TDS has been deducted from pension for Mar-2018 (credited on 3-Apr-2018) and the following months.

The TDS and the pension amount are reflecting in 26AS for AY 19-20.

So, the TDS for Mar-2018 pension cannot be claimed in AY 18-19.

Then, how to compute total pension for FY 17-18 as pension for Mar-2018 has been shown as Salary Income u/s 192 in 26AS for FY 18-19?

Now, if for some reason, the pension for March-19 is credited before the last day of March-19, then the total pension income as per 26AS for FY 18-19 would be calculated from Mar-18 to Mar-19!!

Hasn't SBI committed an error by showing pension earned for Mar-18 in the 26AS for FY 18-19 solely based on the pension credit date?

Replies (10)
I think you should claim the credit of TDS in AY 2019-20.

I'm thinking on the same lines. BUT:

Then, how to compute total pension for FY 17-18 as pension for Mar-2018 has been shown as Salary Income u/s 192 in 26AS for FY 18-19?

Now, if for some reason, the pension for March-19 is credited before the last day of March-19, then the total pension income as per 26AS for FY 18-19 would be calculated from Mar-18 to Mar-19 and end up paying tax on an extra month!!!

Has March 2017's pension been considered in current AY 2018-19?

No.

All previous returns were filed on actual basis since there were no TDS implications back then. Accrued pension from Apr-16 to Mar-17 has been shown in the salary field of ITR-1 for FY 16-17 / AY 17-18 filed before due date and it includes the pension for Mar-17.

Also Mar-17 pension is less tan Mar-18 pension (increase due to pay commision).

If I were in your situation I would show pension income from April 2017 to March 2018 as per pension certificate and claim eligible deductions from 80C to 80U. If still tax would be payable I would pay. And I would deal with TDS of March 2017's pension in AY 2019-20 as it was deducted in April 2018.

Took a look at the old a/c statement / ITR / 26AS:

Pension for Mar-17 was credited by SBI on 1-Apr-2017. TDS deducted 0.

No entry is there in 26AS for AY 17-18 or AY 18-19.

Pension for Mar-17 was included in salary income for FY 16-17 as per ITR filed.

I would do the same as I said earlier.
Originally posted by : Harsh

If I were in your situation I would show pension income from April 2017 to March 2018 as per pension certificate and claim eligible deductions from 80C to 80U. If still tax would be payable I would pay.

And I would deal with TDS of March 2017's pension in AY 2019-20 as it was deducted in April 2018.

First statement sounds good. But for the second one:

Total Amount credited in 26AS / Form 16 for AY 19-20 will not match the actual amount credited in book/statement/pension slip for FY 18-19.

And if under some unforseen circumstances, Mar-19 pension is credited in the month of March itself, it will lead to taxation of an extra month of pension or, if in that case, Mar-18/Mar-19 pension is not reported/suppressed in ITR for AY 19-20, will lead to amount mismatch.

If TDS for March 2018 is deducted on 3rd April, 2018 then it must be shown in 26AS of AY 2019-20.

As I said earlier I would show pension of March 2019 pension in AY 2019-20 only whether it would be reflected in AY 2019-20's 26AS or not as I would have supporting evidence of pension statement.

Understood. Thanks so much for the replies.

(ran out of the dialy quota for likes, so couldn't convey the same laugh)


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